Herbalife maintains that it is not a pyramid scheme.

Herbalife Ltd (HLF - Get Report)  stock fell 5.25% Monday while Nu Skin Enterprises Inc. (NUS - Get Report) fell 7.45% after China announced that it was cracking down on multi-level marketing company recruitment, also known as pyramid schemes. 

China's State Administration for Industry & Commerce (SAIC) announced that it was launching a three-month campaign against pyramid recruitment practices. The report the agency released did not mention either company, but that didn't stop the sell-off Monday. 

Nu Skin Enterprises shares were still falling Tuesday, down 1.8% to $55. Herbalife shares remained unchanged premarket. 

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